What care, if any, should be taken when selecting stocks for an investment portfolio?

What will be an ideal response?


Answer: Stocks should be selected such that their returns are inversely correlated, so that the risks get cancelled out as we pool more stocks in the portfolio.

Business

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Retleb Manufacturing Company noticed that, during its busiest month of 20xx, maintenance costs totaled $15,400, resulting from the production of 32,000 units. During its slowest month, $12,600 in maintenance costs were incurred, resulting from the production of 24,000 units. Using the high-low method, what maintenance cost would the company expect to incur at a volume of 20,000 units?

a. $7,000 b. $11,200 c. $8,400 d. $2,800

Business

The term "relevant range" as used in cost accounting means the range over which

a. costs may fluctuate. b. cost relationships are valid. c. production may vary. d. relevant costs are incurred.

Business

Which of the following is an incorrect statement regarding the Economic Espionage Act?

A) Trade secrets are protected under the Economic Espionage Act. B) Under Section 1832 of the Economic Espionage Act, an individual who misappropriates a trade secret related to a product produced for interstate commerce, with the knowledge or intent that the misappropriation will harm the owner of the trade secret, may be subject to a prison term of up to 10 years. C) An organization convicted under Section 1832 of the Economic Espionage Act may be fined up to $1 million. D) Under Section 1831 of the Economic Espionage Act, the misappropriation of trade secrets with the knowledge that the secret will benefit a foreign power may lead to individual prison sentences of up to 15 years per offense and fines for organizations of up to $10 million.

Business

What is the best way to get a meeting with a professional investor to make your pitch?

a. Persistent phone calls b. Persistent emails c. Make an appointment in person d. Get a trusted referral

Business